chapter 14 industrialization. i.us industrializes: by early 1900’s america had transformed into...
TRANSCRIPT
Chapter 14
Industrialization
I. US Industrializes:By early 1900’s America had transformed into the
worlds leading industrial nation – By 1914, the Gross National Product (GNP) The total value of all goods and series produced by a county was 8 times greater than it had been when the Civil War ended.
Many factors contributed:A. Natural Resources:1. Huge amount of raw materials was an important
reason – water, timber, coal and iron.
2. America obtained them cheaply because didn’t have to import them. Many of these resources were found out west, - settlement of this region accelerated industrialization.
3. Same time, new resource, petroleum, began being exploited. - in high demand because it was turned into kerosene – for lanterns and stoves.
4. In 1859, Edwin Drake drilled the first oil well near Titusville, PA - Oil production rose fueling economic expansion.
B. A Large Workforce:
1. The labor was just as important as the resources – population almost tripled – population provided industry with not only a large workforce – but would create greater demand for consumer goods it produced.
2. Two causes for Pop. Growth: - large families and a flood of
immigrants
C. Free Enterprise1. Many Americans in late 1800’s embraced
laissez-faire – literally “let do” – French meaning stating to let people do as they choose.
2. Supporters believe the government should NOT interfere with business other than to protect private property and to maintain peace.
3. Supporters believe that - supply and demand should dictate business and
NOT government regulation of prices and wages.
- A free market with competing companies leads to greater wealth for all
- Believe the governments debt should be limited since money govt borrows from the bank is not available to be loaned out to individuals
4. The profit motive attracted people of high ability and ambition into business – American entrepreneurs – people who risk their own capital in creating and running a business – make profits for themselves.
5. Their money also helped to fund the nations industrial buildup
D. Government’s role in IndustrializationNow remember – since the really 1800’s the
struggle between the north and south had shaped economic arguments in the US.
1. Northern leaders wanted high tariffs to protect American industry from foreign competition - in other words – “BUY AMERICAN”
2. Also wanted federal money to build railroads, canals and roads out west (to make $$)
3. South wanted low tariffs to PROMOTE trade. – Civil War ended this debate:
When the south seceded, the Republicans were left in control of congress – passed the Morrill Tariff – reversing years of declining tariffs – by end of the war – tariffs tripled.
People point out that one reason we industrialized so quickly was because it was one of the largest free trade areas in the entire world
4. UNLIKE Europe, which was divided into dozens of controlled states – the US was open to trade – Constitution BANS states from imposing tariffs – in other words – not a lot of regulations and not a lot of immigrant restrictions.
5. High tariffs, however contradicted laizze-faire ideas and hurt many Americans:
- When the US raised tariffs against foreign goods, other countries in turn raised tariffs against American goods – hurt US companies trying to sell goods overseas – hurt farmers trying to sell their products to Europe – many left to take new jobs in factories.
What 4 factors helped promote Industry in the US?
Natural Resources
Lots of Labor (workforce)
Free Enterprise
Governments Role
New Inventions!
A. Bell and the Telephone:1. One of the most dramatic inventions in the
late 1800’s came in communications – Scottish American inventor named Alexander Graham Bell suggested the idea of a telephone to his assistant. – Wanted to “talk through telegraph”:
2. He worked until 1876 before succeeding in transmitting his voice – picking up the phone – called to the next room “Come here Watson, I want you”…
3. He and others organized the Bell Telephone Company - which eventually became the American Telephone and Telegraph Company – aka…
AT&T!
Other inventions
• - Printing press• Phonograph• Electric vote recorder• Alkaline storage battery
B. Edison and Electricity1. Most famous inventor of the time was Thomas
Alva Edison – lab at Menlo Park, NJ became the model for the modern research laboratory. – First invention was the Phonograph.
2. In 1882, transformed American society by brining electric power to NYC – known later as Edison General Electric Company (GE)
C. Technology’s impact:1. Everyone felt its effects - ice machines made it
easier to ship food without the sickness – clothing industry boomed with the electric mill – improved connections between people – cable was laid across the Atlantic Ocean – instant connection between here and Europe. – by 1920’s radios had sprung up .
Section 3 – The Rise of Big Business!!I. Rise of Big BusinessBig business now dominated the economy.,
operating huge complex factories, warehouses, offices..
A. Role of Corporations:1. BB would not be possible without
corporations. - a corporation is an organization owned by many people but treated by law as though it were a single person.
2. A corporation can own property, pay taxes, make contracts, and sue and be sued. The people who own the corporations are called stockholders because they own shares of ownership called stock.